Frequently Asked Questions

There are several factors that we look for in a partnership and a project,
including:

• Community Need: Prior to any acquisition, our team conducts a thorough needs and demand analysis. This entails two main investigations. The first is understanding and connecting with the community. Who are the main housing actors (non-profits, community organizations, municipal agencies, etc.)? Building these connections will provide us with a sense of how we can best support local organizations. The second investigation is a more quantitative needs analysis. We examine the degree of need and demand in the community, through public documents, to better focus our property search to address the housing gaps in the community.
• Building Condition: Our target properties are older, multi-unit buildings that could use some additional TLC. We look for buildings with strong bones to build from the foundation. If the building is so decrepit that it cannot be ‘saved’ and needs to be demolished for safety concerns, these will not meet our viability threshold. The ultimate factors will be based on a BCA analysis and by walking through the building and seeing firsthand the conditions.
• Financial Feasibility: We target multi-residential properties to ensure that the investment makes financial sense. Our target properties typically include a minimum of 6 units, but ideally 8+. Rental Rescue does not have a maximum number of units and can leverage collaborative partnerships to make a project financially viable. Ultimately, we really focus on economies of scale to ensure that we can execute a sustainable and affordable long-term model for the property.

Rental Rescue has an internal viability assessment framework that considers non-profits’ financial statements, governance policies, and strategic framework, to assess whether a partner is the right fit as a partner. We then tailor our support to meet the unique needs of each organization – regardless of size. However, we also put a large emphasis on the relational aspect of the partnership.

What do we look for in a partnering organization?

• Common Mandate: Our focus is ultimately to support local communities to offer adequate, sustainable and long-term affordable housing. Partnering organizations must share a similar mandate. Furthermore, we are targeting younger organizations interested in acquiring buildings, exploring debt-financing options, alongside preferred and philanthropic funding.
• Minimum Financial Capacity: While we are open to working with organizations from infancy to well established non-profits, there is a minimum financial capacity we look for when beginning our work together. To assess an organization’s ability and willingness to enter into a multi-million-dollar housing partnership, as well as to ensure mutual trust in each other, Rental Rescue asks for an upfront, good-faith retainer once it has been decided that we will be working together. This value is on a sliding scale to appropriately reflect the portfolio of the organization.
• Genuine Connection: The number one factor that influences our decision to develop a partnership with a local organization is whether we are able to establish a genuine connection with the people running the non-profit organization. We are entering into a multi-million dollar partnership, and both parties need to feel respected, heard, understood and willing to compromise, in order to feel comfortable moving forward.

For more information on this, please see the Rental Rescue A.R.M.O.U.R document.

We cannot stress enough the importance of our unique approach and willingness to support the specific needs of each organization. So, declaring a standard one-size-fits-all pathway is not possible. However, here is a very high-level overview of the stages of our process from application to acquisition:

• 1st meeting: No matter the organization, once we receive interest, through application, email, or in-person, we will set up a 30-minute introductory meeting. This meeting will focus on the organization’s needs, goals, and long-term vision. We will share some options on how we may be able to support.
• Intake and Understanding: This stage will be different in every situation. Our team will be available to answer questions and meet with the necessary individuals to ensure both parties can make an informed decision on whether this partnership is the best fit moving forward.
• Memorandum of Understanding: If it is established that both parties wish to move forward, then the partnering organization will sign an MOU with Rental Rescue for us to begin the property search process. This will also be the stage of payment for the Good Faith Retainer Fee. As well, we will also require the signing of an NDA.
• Property Search: Our team will leverage our market and off-market resources and connections to find properties that meet the goals and desires of the partnering organization. We take a collaborative approach, where we will work with our partnering organizations to choose the best property for them. Once both parties agree on a property, Rental Rescue will submit an offer for purchase.

Rental Rescue leverages local community partnerships to deliver tailored support services to the individual needs of the tenants in each property. Every individual is unique and will require different opportunities. Some examples of supports we have provided include: rental deductions, financial literacy support and clinics, and food insecurity partnerships. This process relies heavily on the community partnerships Rental Rescue has developed to lean on local support.

Rental Rescue works in collaboration with the partnering community housing organizations to select the property and then purchases it in-trust. This means that during the stabilization process, Rental Rescue will own and manage the property. Once the stabilization process is completed, and the partnering organization’s funding is secured, we transfer the ownership to the organization, as outlined in the bare trust agreement.

Tenant stabilization involves ensuring residents have the supports and resources needed to maintain long-term housing, such as access to social services, mental health care, or financial assistance. It also includes fostering a safe, respectful living environment through consistent communication, conflict resolution, and property upkeep. However, at Rental Rescue, we take a very tailored approach to stabilization, recognizing that every individual is different and requires unique supports.

Rental Rescue is proud of the partnerships it has established with private-sector funders. Through these unique agreements specific to Rental Rescue, our team is able to leverage various sources of capital depending on the unique needs of the project. This will result in a tailored and unique capital stack financing structure.

While we are not dependent on government funding in our model, if there is government funding available to support our acquisition and revitalization process, then we will seek to access some of that funding.

Before acquiring any property, our team executes the necessary studies to inform us of its quality and conditions, from soil to structure. These factors will all influence our decision on whether the property would be a good fit. Once we have a quoted estimate on the required renovations and repairs, these costs will be plugged into our unique financial viability assessment tool to see if the capital work that needs to be done, on top of the purchase price, is acceptable.

Rental Rescue is proud to partner with community suppliers for all the work and renovations being conducted on the properties. We firmly believe they know their area best and keeping that wealth in the community builds local economic stability.

Each project is unique and we can be flexible depending on the needs of the non-profit. However, in our acquisition and support model, we do have a service fee to cover our risk and human capital dedicated to each project. As well, we collect rents on all units under our ownership and management.

Rental Rescue is willing to work with local municipal agencies looking to offer affordable housing. This process would look more like a consultant for a service structure, where we would work to deploy municipal capital rather than injecting private capital.